'No link': Saudi Oil Minister Ali al-Naimi
‘Speculation driving oil price surge’
Speculation is driving triple-digit oil prices, making it impossible for any organisation to control price movement, Saudi Oil Minister Ali Naimi said in remarks published today.
"Speculation in futures markets is determining prices," Naimi told Asharq al-Awast newspaper in Morocco. "Today there is no link between oil (market) fundamentals and prices."
"The duty of oil exporters is to make sure that fundamentals are healthy," said Naimi. "If these fundamentals were stable and fulfil market needs, then there is no need to raise or decrease production," he added.
Naimi was speaking on the sidelines of a mining conference a day after Opec decided to leave its output unchanged, dismissing a call from the US to act to tame prices.
Opec ministers said recent record high prices had been driven by factors beyond their control, such as a weak dollar, speculation and political strife, not by a lack of oil.
Oil held near $106 a barrel today, within sight of a record high, helped by a drop in US oil inventories, a tumbling US dollar that bolstered fund buying, and Opec's reluctance to pump extra crude, Reuters reported.